Deck 1

Question 1

Profit

Answer 1

Revenue - Expenses (Not Necessarily Cash)

Question 2

Accrual Accounting

Answer 2

Report revenue when earned

Report expenses when incurred

Question 3

Cash Flow Statement

Answer 3

How cash was entering or leaving the business

Question 4

Positive and Negative figures

Answer 4

5000 (5000)

Question 5

1st Part of Cash flow statement

Answer 5

Operations (products and services, core business),

Question 6

2nd Part of Cash flow statement

Answer 6

Investing (Cash spent/received from investments, outside business activities),

Question 7

3rd Part of Cash flow statement

Answer 7

Financing (Raising, borrowing, repaying capital) (stocks issued, dividends paid, debt)

Question 8

Net Change in Cash

Answer 8

Sum of the three sections

Question 9

Operations direct method

Answer 9

Net income + adjustments

Question 10

Net Income

Answer 10

Taken directly from income statement

Question 11

Depreciation/Amortization

Answer 11

Non-Cash Transaction (Wear and Tear)

Question 12

Gain/Loss on Disposal of Asset

Answer 12

Selling of a Forklift, e.g.

Question 13

3 Parts of Changes in Working Capital

Answer 13

Inventory, Receivables, Payables

Question 14

Receivables

Answer 14

Credit, what is owed to you

Question 15

Payables

Answer 15

Obligation to pay off debt